ADVERTISER PROFILE - SALES INISTITUTE OF IRELAND: Trust may be an intangible concept but it is the key to rebuilding the success of Ireland Inc at home and on a global stage
As consumers and customers struggle to cope with changing economic circumstances, trust has become an overriding concern for businesses around the world. Corporations are facing trust issues due to political as well as economic circumstance and key to their success is retaining or restoring confidence in their brand, product or service.
The trust issue is dealt with in different ways by corporations but to be successful any approach needs to be organised, visible and measured. This is according to Mark Cahalane, managing director of Edelman Ireland and head of Edelman's EMEA Corporate Practice. Edelman was one of the speakers last month at the Sales Institute 'Restoring Trust and Confidence' conference where he presented key findings from the 2010 Edelman Trust Barometer which surveyed 4,875 people in 22 countries across five continents. It is the tenth annual study of its kind and it examines the level of trust in the media, corporations, NGOs and the Government.
The Barometer was published earlier this year at the World Economic Forum in Davos and it showed that trust in the banking sector worldwide is at an all-time low - trust in UK banks is down to 21 per cent from 41 per cent in 2007; trust in US banks is down to 29 per cent from 68 in 2007; trust in Irish banks is 23 per cent down from 39 per cent in 2007. Though trust levels in the banks are low, worldwide trust in business as an institution rose. However, of all the countries surveyed, Ireland ranks lowest in terms of trust in both business and Government.
Ireland is now sceptical in its outlook, according to Cahalane, referring to the mood of 'retribution' that is pervasive in society and evident in the media. It seems that in an age of bailouts and bonuses, banks must acknowledge that yesterday's 'business as usual' is no longer common currency as the report stated that, for the first time, 'trust' and 'transparent and honest business practices' are seen as the most important drivers of corporate reputation globally. In the past 10 years of the Trust Barometer, graphs of the levels of trust and the stock market tend to overlap.
When Ireland recovers, says Cahalane, it will because of a revitalised confidence in our various institutions and, he believes, we therefore need more positive thinking and a revaluation of our ethics and values. He quoted Josef Ackermann, chief executive of Deutsche Bank, who stated earlier this year: 'Already, we've seen speculation that our industry will soon be back to business as usual. Let me say clearly: there are lessons from this crisis that we cannot afford to ignore.' It was a message also echoed by another speaker Eunan O'Carroll, sales and marketing director at Friends First Life Assurance Co. Every day we must start with action to move ourselves forward, he said, as there is little point sitting back and despairing.
The importance of trust is key to success in the current climate, according to Sales Institute of Ireland, and so it was chosen as the topic for this conference. 'This conference was about getting people talking about trust and to remember how important it is', says Mervyn O'Shaughnessy, chief executive of the institute. "We brought people together who would have different outlooks on the concept and importance of trust and we wanted it to be a message of hope. There is enough doom and gloom and it is time to see how we can move forward. Regaining the trust of consumers and customers is one way to do that."
A key message from the conference is one that people know from their everyday lives - trust is hard won and Ireland as a country now needs to work harder than other countries to regain global and local trust. There has been a shift from a stakeholder rather than a shareholder society and companies are now expected to listen to and engage with a wider circle of influencers than previously necessary to deliver both profit and purpose. Ireland, says O'Shaughnessy, can regain that trust by producing the quality of work and results that will see the community feel the confidence required to do business again at home and abroad.
According to Barry O'Leary, chief executive of IDA Ireland, also a speaker at the event, though Ireland is a little 'battered', the international world-view of Ireland is positive with many world-class organisations choosing Ireland as a location of choice for their business. 'Our costs have dropped, our infrastructure is improving and the skills of our people continue to rise,' he said. Ireland, he says, has plenty of selling points and it is time to have 'confidence and trust'. "We have a highly skilled and innovative labour force capable of performing at the top level on an international stage," he says.
So, it seems, as well as rebuilding and learning to trust our institutions again and building their reputations abroad, we also need to regain our own trust in ourselves as a world-class performer. Trust is an interesting concept, in many ways it's intangible, but the events of the last 18 months indicate that trust or confidence are essential for organisations to operate. It is going to take more than money to rebuild the reputations of our financial institutions and the bottom line is that it is no longer about the bottom line.
MORE FROM THE CONFERENCE
As well as the hard facts from the Trust Barometer and the view from the outside, looking in at Ireland by O'Leary, there were many different aspects of 'trust' at the conference. Marc Coleman, economist and broadcaster, encouraged people not to get bogged down in the negative media coverage and instead focus on the facts that indicate Ireland will turn the corner. The best salesperson is a confident one, he said, so we need to have confidence in our future.
John McElligott, director of strategy at eBay, discussed how the world is getting smaller and with the global reach of the internet, transparency is now key. "We are more likely to trust a complete stranger ahead of a marketing expert because we know that when a stranger gives their opinion, it is real - they are just telling it as it is." Consumers, he says, are fickle and a brand's importance is only as strong as customers' positive perceptions. This is especially true when the internet allows customers' opinions to cross the globe.
Jonathan Staunton, head of sales, Pepsico International (Ireland), focused on strategies for long-term management of customer profitability. Customers are becoming better educated and are more savvy with their choices. Indeed with less money to spend, this is highlighted and it is even more important to keep your customers trust in you. Going beyond the call of duty was the advice from Jonnie Cahill, head of communications and sponsorships at O2. "Speak English because your customers do, go so far beyond what you promise that trust never becomes an issue," he advocated. This was echoed by Aongus Hegarty, VP and GM of small and medium business Emea, Dell, who emphasised the need to fully understand your customer's needs in order to meet them.
The final speaker of the day was Wilhelm Verwoerd, project co-ordinator of sustainable relations, Irish Peace Centres, who spoke about trust outside the realm of business. As well as his own story of overcoming racial divides from an unexpected perspective, he introduced two former political prisoners from opposite sides of the conflict in Northern Ireland who have managed to build trust and a lasting friendship.
For more information on the conference and the Sales Institute of Ireland, see www.salesinstitute.ie
